Ontario Teachers' Pension Plan announces GE Aviation strategic partnership
TORONTO--The Ontario Teachers' Pension Plan (Teachers') has entered into a new strategic partnership with GE Aviation to support the development of advanced technologies for the GE9X engine.
In connection with this partnership, Teachers' also entered into an inaugural transaction with the Development Bank of Japan (DBJ) that establishes an ongoing global relationship based on providing innovative financing.
The GE9X engine will power Boeing's new wide-body 777X aircraft, and is expected to provide a 10% improvement in fuel consumption over the existing GE90-115B engine. The 777X aircraft is scheduled to enter service in 2020.
"GE Aviation is a forward thinking, globally focused industry leader, while DBJ is a very important long term global partner as we continue to expand our scope in Asia and they increasingly seek opportunities outside of Japan," said Michael Wissell, Teachers' Senior Vice-President, Public Equities. "This transaction exemplifies the value of such relationships with like-minded partners."
GE Aviation, an operating unit of GE (NYSE: GE), is a world-leading provider of jet and turboprop engines, components and integrated systems for commercial, military, business and general aviation aircraft. GE Aviation has a global service network to support these offerings.
DBJ is 100% owned by the Japanese government, provides seamlessly integrated investment and loan services. In committing to this program, DBJ has benefited greatly from the thirty-year history that DBJ and its predecessor, the Japan Development Bank (JDB), have had in supporting the Japanese aviation industry to improve the international competitiveness.
DBJ's corporate philosophy is to "design the future through innovative finance." Using creative financing techniques, DBJ is committed to working with customers to resolve their problems, earn their trust and build a prosperous future.
With $140.8 billion in net assets as of December 31, 2013, the Ontario Teachers' Pension Plan is the largest single-profession pension plan in Canada. An independent organization, it invests the pension fund's assets and administers the defined benefit pensions of 307,000 active and retired teachers in Ontario.